TechNavio's analysts forecast the Global Carrier Ethernet Equipment
market to grow at a CAGR of 6.99 percent over the period 2012-2016. One
of the key factors contributing to this market growth is the need to
reduce the total expenditure of service providers. The Global Carrier
Ethernet Equipment market has also been witnessing the increasing demand
for EADs. However, the interoperability issues could pose a challenge to
the growth of this market.

Commenting on the report, an analyst from TechNavio's Networking team
said: ''Currently, there is an increasing demand for Ethernet Access
Devices (EADs) from many organizations across the globe. This is mainly
because of the growing number of carrier Ethernet connections in these
organizations as a result of increasing backhaul from digital subscriber
line access multiplexers (DSLAMs). Moreover, the exponential growth in
organizational internet traffic and inter-office applications such as
e-mail, enterprise VoIP, and videoconferencing have led to significant
opportunities for service providers and operators to adopt carrier
Ethernet networks. This directly encourages organizations to
increasingly adopt EADs, which help manage high-speed data traffic.''

According to the report, one of the main drivers in this market is the
need for service providers to reduce their operational and capital
expenditure. Carrier Ethernet equipment helps service providers reduce
their overall costs as multifunctional equipment is used for service
delivery, testing, and access over network infrastructure. This reduces
the need for different types of equipment and thus reduces the cost of
implementation and maintenance of additional equipment.